|DURATION||DISCOUNTED RATE TODAY - October 21, 2019||REGULAR RATE|
There are many features that I like on FirstMetroSec PRO.
In this article, I’d like to share with you the top three features I like about the Volume Review tab of my FirstMetroSec PRO account.
I’d like to inform you that First Metro Securities Brokerage Corporation did not pay me or Equilyst Analytics, Inc. to write this article.
I see the value in the platform that I’m using. That’s what motivated me to write this.
Shall we begin or you want a longer introduction?
Haha! Skip that. Ready!
Volume Weighted Average Price
I’ll tell you WHY the VWAP is personally important to me. I’ll also tell you WHEN do I use it and HOW I use it.
The VWAP cancels all the intraday noises in the market for that particular stock.
If that stock releases an earnings report, how do you usually react?
“Oh, let’s check the chart or the bid-ask spread and see if the traders are selling the news or not.”
That’s one of your first possible reactions, isn’t it?
I don’t do that.
Whether the company releases a new earnings report or a politics-driven news that may directly or indirectly affect that stock is announced on the TV or newspaper, I don’t react in panic. It’s just another day for me.
I only refer to the VWAP and the current price of the stock.
If the current price is HIGHER than the VWAP, it means the demand is relatively high.
If the current price is LOWER than the VWAP, it means the demand is relatively low.
It’s dead simple.
Here’s another example of how I refer to the VWAP.
Let’s say I traded a particular stock.
If my entry price is LOWER than the closing VWAP, it means I was able to buy at a cheaper price.
Besides, the VWAP is one of the four elements of my proprietary Momentum Power Indicator.
If the current price is ABOVE the VWAP and if the three other elements of my Momentum Power Indicator are true, that makes my Momentum Power Indicator bullish.
When my Momentum Power Indicator is bullish, it means the ascent in price is more likely to continue.
Those are Lessons 1 and 2 of The Evergreen Strategy in Trading the Philippine Stock Market seminar.
I’m super tempted to talk more about this but I might end up frustrating those who paid for their tickets. So let me just invite you to attend my The Evergreen Strategy in Trading the Philippine Stock Market seminar. I will teach you my original methods from stock selection to execution of plans. You won’t find my stuff on Google.
Volume Distribution Chart
This Volume Distribution chart is one of the things that made me compare my COL Premium account with FirstMetroSec PRO.
With FirstMetroSec PRO, it’s a lot easier to see which price range got the biggest volume.
There’s a graphical representation of the data.
With COL Financial, you already have 7 digits in your portfolio yet the datasets still don’t have graphical representation.
It shouldn’t be a concern if the stock only has 5 to 10 fluctuations (e.g. 10.01 to 10.10). You don’t need to scroll too much if that is the case.
But in the case of stocks that are highly volatile in their intraday price action, you’ll have to scroll 2 to 3 times just to see the intraday low on the Time and Sales data.
The thing is you may also have to scroll up and down, and back and forth, just so you’ll find the range that got the biggest volume.
With FirstMetroSec PRO, it’s easier to find the dominant price range that got the biggest volume because all I have to do is find the range that got the longest horizontal bars.
What’s the big deal with the price range that got the biggest volume?
It’s a representation of demand.
If a certain price range got the biggest volume, that means that’s the favorite price range of the traders.
I always advise my clients to find and pick the dominant range when buying so that they can strategically and realistically position their trade.
Some traders are dreaming while awake.
The stock has been trading between 10 and 10.10 yet some traders wish that someone would sell them shares at 9 apiece.
I am not saying that it’s impossible for those traders to be able to buy shares at 9 per share even though the intraday low is only at 10 per share.
My point is, you have to be strategic and realistic while being wishful.
The percentage of chance for you to buy shares at 9 per share is slim when the intraday low is at 10 per share only.
Did you get my drift?
I have good news for you.
At Equilyst Analytics, I have the Volume Distribution chart AND the Trade Distribution chart.
See the auto-generated statistics and chart of my Trade-Volume Distribution chart below.
Last Price: 231.60
Most Traded: 231.2 – 231
Most Voluminous: 230.4 – 233.8
Request for the Stock’s Trade-Volume Distribution Chart
All subscribers of Equilyst Analytics can request for any stock’s Trade-Volume Distribution chart, together with our interpretation, in our Private Clients Forum.
Get all 6 in 1 subscription when you subscribe today.
- Daily Video of 10 Trade Ideas for Short-term Traders
- Daily Recommendations for the 30 Index Stocks for Long-term Investors
- Mentoring in the Private Clients Forum
- Eligibility to the Referral Incentive Program
- 50% Discount in our The Evergreen Strategy in Trading the Philippine Stock Market Seminar anywhere in the Philippines
- FirstMetroSec PRO Access (2 months free)
It’s not enough to know the price range that got the biggest volume.
You should also know if that range that got the biggest volume is in confluence with the range that got the highest number of trades.
It is to eliminate cross trades from your trade-volume distribution analysis.
For example, if the price at 10.00 got 50 percent of today’s volume but only 0.01 percent of the total number of trades was registered at that price, what would you think?
“Wait a minute. Half of today’s volume was traded at this price but I have to get a magnifying glass just to see the number of trades that happened at this price? Hmmm. There’s something suspicious here.”
I want to catch and eliminate those cross trades because they are controversial sometimes.
So, once I catch a suspicious price point with a significantly imbalanced length of volume and trade horizontal bars, I remove that price point from the coverage of the dominant range that I use as a candidate for an entry point.
You better attend my seminar. It’s a better avenue for me to discuss this thoroughly.
Real-time Net Foreign
I’ve been a COL Premium client for the longest time but they still do not have data for the real-time Net Foreign of each stock listed on the Philippine Stock Exchange.
Before I learned about FirstMetroSec PRO, I had to wait for the Philippine Stock Exchange to upload their end-of-day (EOD) PDF file on pse.com.ph just to know if the stocks in my radar got a Net Foreign Buying or Selling.
Thanks to FirstMetroSec PRO! I can now see the real-time Net Foreign for any stock listed on the PSE.
If the stock’s price is going down but the foreign investors registered an 8-digit Net Foreign Buying, won’t that give you the motivation to hold your position, especially if the price is still trading above your trailing stop loss?
If the last candlestick is already red and there’s a huge Net Foreign Selling, you may want to pre-empt your trailing stop loss by selling a few tranches (provided it still makes sense to divide your total holdings into tranches).
The value of the Net Foreign is important for me because it’s 1 of the 3 bonus signals that you should check to know if the upward momentum is strong.
Do I have an original scientific method to know if the upward momentum is strong?
Yes, I do. That’s in the Lesson # 1 of The Evergreen Strategy in Trading the Philippine Stock Market seminar.
If you already attended this seminar, I suggest you review the latest handouts I sent you for a refresher.
Now You Know
Do we have the exact same favorites in the Volume Review tab? Please share your thoughts in the comments.
What are the other features inside the Volume Review tab of FirstMetroSec PRO that are extra-special to you? Please let me know in the comments. Who knows? They could be my new favorites, too!
I am Jaycee De Guzman, founder and Chief Executive Officer of Equilyst Analytics, Inc. My mission is to simplify stock trading and investing in the Philippine Stock Exchange using my proprietary evergreen strategy in stock trading and investing. My vision is to level up at least 1,000,000 Filipino stock traders and investors by 2030. I will make it happen.
|DURATION||DISCOUNTED RATE TODAY - October 21, 2019||REGULAR RATE|